After the latest announcement of Apple’s (NASDAQ: ) financial results, market experts shared their opinions on the company’s stock, expressing an overall optimistic outlook. They indicate that Apple is likely to experience further success in the future.
Bernstein praised Apple’s fiscal third quarter performance, noting that the results slightly exceeded market expectations with a 5% increase in revenue and 14% growth in services. Bernstein pointed to Apple’s consistent free cash flow and limited spending on assets, referring to Apple’s strategy as “capital-light,” which reduces the risk of spending too much on investments.
Market experts raised their earnings per share forecasts for fiscal 2024 and 2025 and reiterated their view that concerns about Apple’s operations in China are overblown, viewing current weakness as temporary rather than permanent. Bernstein predicted that advances in Apple’s AI features will lead to large numbers of users upgrading their iPhones, possibly during the iPhone 16 and iPhone 17 release cycles .
Goldman Sachs recognized the strong performance driven by iPhone sales and service. He pointed out that stock levels of Apple products are at the lower end of the preferred range, indicating that demand is high. Goldman Sachs predicts a multiyear period in which many users will replace their iPhones, supported by strong service profit margins.
Market experts noted that Apple’s gross profit margin forecast for the fourth quarter could set a record for the September quarter, boosting the outlook for stable and consistent performance.
Piper Sandler noted that Apple’s results for the June quarter were slightly better than expected, with an increase in iPad sales and services. Although iPhone revenue is down from last year, the number of active devices has reached new heights.
Piper Sandler remains cautious about the consumer market in the second half of the year, but recognizes the enthusiasm of the company’s management for Apple’s development in artificial intelligence. He maintained a neutral rating and a $225 price target, saying the current stock price accurately reflects the company’s value.
Wells Fargo rated Apple’s earnings forecast as “satisfactory,” indicating that it may be a conservative estimate. He continues to be positive about the potential of significant numbers of users upgrading to the iPhone 16, encouraged by historically low upgrade rates and growing consumer awareness of generative artificial intelligence.
Wells Fargo also highlighted improving business performance in China and reiterated its Overweight rating with a price target of $275.
Bank of America said that “the best is yet to come” for Apple, pointing to the possibility that many users will upgrade their iPhones over the course of several years, driven by Apple’s artificial intelligence capabilities. He observed positive developments in Apple’s product lines and global markets, with the service sector posting record profits.
Bank of America expects potential increases in the number of iPhones sold, average selling prices and gross profit margins, maintaining a Buy rating with a price target of $256.
In summary, market experts agree that despite some near-term headwinds, Apple’s strong business foundation and strategic focus on AI and services will likely lead to further growth and potential enhancement of value of the company’s shares.
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